SCHD vs WFH
Schwab US Dividend Equity ETF vs Direxion Work From Home ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | WFH | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.45% | |
| AUM | $103.7B | $13M | |
| Dividend Yield | 3.31% | 1.05% | |
| Holdings | 104 | 41 | |
| YTD Return | +25.33% | +15.01% | |
| 1Y Return | +32.31% | +24.89% | |
| 3Y Return (annualized) | +15.40% | +20.91% | |
| 5Y Return (annualized) | +9.70% | +5.89% | |
| Volatility (annualized) | 13.6% | 21.9% | |
| Max Drawdown | -33.4% | -51.2% | |
| Fund Family | Charles Schwab Asset Management | Direxion Funds | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Jun 25, 2020 |
SCHD vs WFH Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Direxion Work From Home ETF (WFH) is a ETF from Direxion Funds. Over the past year SCHD returned +32.31% while WFH returned +24.89%. Year to date, SCHD is up 25.33% versus a gain of 15.01% for WFH.
Over three years, SCHD compounded at +15.40% per year against +20.91% for WFH; over five years the annualized figures are +9.70% and +5.89% respectively. Across the full 5-year window we track, SCHD has the edge at +11.45% annualized vs +8.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WFH has been the more volatile fund, with annualized monthly volatility of 21.9% compared with 13.6% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -33.4% for SCHD and -51.2% for WFH. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while WFH charges 0.45%. On a $10,000 position that is $6 vs $45 annually, a gap of $39 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 1.05% for WFH.
Frequently Asked Questions
Which is cheaper, SCHD or WFH?
SCHD has an expense ratio of 0.06% while WFH charges 0.45%. SCHD is the cheaper option. On a $10,000 investment, that is $39 per year of difference.
Which performed better, SCHD or WFH?
Over the past year SCHD returned +32.31% vs +24.89% for WFH, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), SCHD annualized +11.45% vs +8.01% for WFH. Past performance does not guarantee future results.
Which is riskier, SCHD or WFH?
WFH has been the more volatile fund at 21.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs WFH -51.2%.
Should I hold both SCHD and WFH?
SCHD and WFH have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, SCHD or WFH?
SCHD yields 3.31% while WFH yields 1.05%, so SCHD currently pays the higher dividend yield.
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